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Bank of Korea Joins Jumbo Hikers as Inflation Fight Heats Up

  • BOK raises rates by record 50 basis points as prices soar
  • Flags intention to keep hiking despite large risks to economy
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WATCH: Min Joo Kang, senior economist at ING, discusses what the BOK’s latest rate hike means for the economy.Source: Bloomberg
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The Bank of Korea doubled the margin of its latest rate increase on Wednesday and promised more hikes to come, as it stepped up its battle against inflation now running at a 23-year high.

The central bank joined a global wave of larger rate increases by pushing up its seven-day repurchase rate by a half-percentage point to 2.25% as widely expected, following five previous hikes half that size. The Reserve Bank of New Zealand also raised its official cash rate by the same margin about an hour after the BOK.